“Polls over the last few days have shown clearly that the general public believe MPs should be able to vote how they like regarding an EU referendum.”

But Mr Cameron insisted voting to leave Europe at a time of financial crisis would be like deserting your neighbours when their houses are on fire when you should be helping and stopping it from spreading to your home.

Foreign Secretary William Hague told MPs a referendum on our future in Europe was the “wrong question at the wrong time”.

With the euro in meltdown, and Britain having to stump up billions to keep it afloat, the row looks set to drag on.

After the economy, it could turn out to be one of the biggest issues to dog Mr Cameron’s premiership.

WILLIAM Hague has ruled out letting the public decide whether Britain stays in the EU – even if MPs vote for it.

The Foreign Secretary has brushed off a 100,000-name petition demanding a referendum and appears to have shed his hardline Euro-sceptic beliefs, insisting: “Our place is in the European Union.”

His remarks will infuriate the Tory right-wing who are already threatening to use the issue to hijack this week’s party conference in Manchester.

MPs have been forced to stage a Commons debate on Britain’s future in Europe after Independent MEP Nikki Sinclaire handed in a petition demanding a referendum at 10 Downing Street.

More than 80 backbench Tories want voters to have the final say and many Labour MPs could back the move because it would be hugely popular with the public, who now pay an average of £299 a year each to run the EU.

It would be the first time Parliament has held a major debate on a giving the public a say since the 1975 referendum confirmed the decision to join the Common Market – and could be held before Christmas.

But if MPs vote in favour of a referendum, it would not be binding on the government.

And asked if he would grant one, Mr Hague said bluntly: “No”.

He admits the EU is “cumbersome, slow and bureacratic” but stresses the upside is the power of 27 nations uniting on vital issues such as imposing sanctions against Syria.

Mr Hague (pictured left with David Wooding) said: “When you you’ve negotiated them, 95 per cent of the sales of crude ooils are stopped because 27 nations together act on that.”

The former Tory leader’s comments are more remarkable because he fought and lost the 2001 general election on a tough anti-EU stance.

He still believes Brussels has too much power but since entering government has seen the bloc of nations acting as a power for good in the world.